Member Info for IdleDaysYann

It may be too soon to hear much about the Namibia tantalum/lithium mine.

But there is plenty going on with the Heavy Mineral Sands.

Further news on HMS and on scaling up 34x with the Perdevlei rights should come soon.

Our HMS is titanium rich. It is one of the metals that has kept its price (only -2.7% YoY) despite a downturn in many industrial metals. The heavy sands are also rich in zircon & monazite. Over 50% of our resource is saleable heavy minerals. The sands do not require expensive mining infrastructure. The environmental impact is essentially zero, as the sands are naturally replenished. We have a offtake agreement with Fujax.

Then there are the diamonds.

Could be a very optimistic AGM.

£40m (4p/share) sounds reasonable for current assets and production, as does Optimo Capital's initial target price of 5.14p.

KZG's share price responds well to company news, as we saw last month. More news to come surely this month include Perdevlei mining rights for 34X current site, a game changer, and Hebei Aftan arbitration outcome. Also we should have confirmation of income from Fujax, and further HMS sales. Also diamond sales.

As for 10x, 20x, 30x share price, that would be terrific. But in the short term we may see a steadily rising share price, perhaps doubling or tripling on the above news. And then, who knows.

A new year, and news may come at any time now: confirmation of payment from Fujax of HMS, diamond revenue, Perdevlei EA to mining rights, resolution of Hebei & Aftan arbitration.

Following up a post by harvd on ADVFN, I see that Fujax also trades in Ta & Li, which may be relevant to Aftan.

Lots going on. 34X increase in HMS area, for a resource that replenishes itself, is startling. What I like about Kazera is its focus is now firmly on revenue & sales.

As for KZG's share price, it is early days. Plenty of scope to 'transform' the share price with sufficient news on the above in the next few weeks.

5085, I absolutely agree with you about the need for 'Western' sources for strategic minerals such as Ga & Ge. The race to monopolise vital elements is a sign of the times.

But I'm confused by your posts: why isn't ppm is the same as g/t?

(You say 'Gallium... typical 50 ppm (0.05 g/t) in bauxite sources'. Why isn't 50 ppm = 50 g/t?)

I guess it depends on the denominator. I'm assuming ppm = parts-per-million, but a million of what? g/t = grams-per-tonne, but a tonne of what?

Are you expressing it in terms of the mined rock or of the metal content?

Sorry if this seems naive. I have walked to Pikedaw Calamine mine (ZnCO3) and pondered whether some disused UK mines ought to be re-investigated for rare minerals.

Seasons Greetings to all, and special good wishes to Funky. Here are my thoughts on our investment.

Heavy mineral sands: great idea to show us progress on the videos.

The recent achievement of HMS offtake agreement and sales at Walviskop provides a sound basis for self-financing further developments, such as upscaling to Perdevlei, and separation of the valuable minerals on the to-do list.

Kazera's South African HMS project is big stuff. The present share price is way below Optimo's 5.14p valuation, let alone the 34X more with Perdevlei. All this without taking on punishing debt which has led another sands company into distress (Tormin MSR). Kazera could see fast growth with such a valuable commodity as high grade HMS, and a continuous supply of such large quantities.

Then there are the diamonds.

Ta/Li mine: Aftan-Hebei could be sorted within a month or two.

My theory is that the Namibia Ta/Li mining interests of Kazera and Arcadia's Swanson are linked (Aftan is after all in the centre of Swanson). For geopolitical reasons, Hebei (and China) have no intention of quitting. Hebei are committed to buying out Kazera's Aftan, and to fund Swanson to production: arbitration could be a route to link these two objectives. The Ta/Li potential there is enormous, particularly as the area is still to be fully explored.

Now, I may be going really off-beam here, but Strand Hanson may have been brought in to develop a new business arrangement for Aftan-Swanson with Arcadia & Hebei, a buy out, or a spin-out company. Kazera will do well to keep in with this. The outcome could dwarf HMS.

News can arrive at any time: Perdevlei EA, diamonds, HMS developments, Hebei, and other things more likely.

And we should never forget the risks: environmental problems, storms and a shipwreck affecting the HMS beach, Hebei difficulties. But, hey, no risk, no reward. "We cannot add to the weight of the world by an ounce, we can only bring to it fancies."

The dates for news on both the Hebei arbitration and Perdevlei EA appeals do seem a little confusing.

For Perdevlei, the following refernce seems to imply 30 days not 21 as in KZG's RNS: 'An appeal must be submitted within 30 days of the appellant becoming aware of the administrative decision'.

This would be at the end of this weelk.

https://www.cliffedekkerhofmeyr.com/news/publications/2021/Corporate/Mining-Minerals-Alert-3-February-2021-How-to-appeal-an-administrative-decision-by-the-DMRE-A-discussion-of-the-amended-regulations.html

For Hebei, olderbut and bumping suggest that '60 business days' is from when Hebei agree to the arbitration. So news on this front may be this week, or in January.

Of course news can come at any time (diamond sales?).

I have a lot riding on this (over 1%). My target is 7p: KZG a £70M company is well within reach. I believe the assets and potential are hugely significant.

The HMS is titanium-rich (ilmenite), with valuable quantities of zircon and monazite (a source of rare earth elements, thorium, lanthanum and cerium). As Kazera scales-up operations, it will get noticed.

On Hebei, there is a possibility of restructuring the relationship with Hebei, involving Arcadia.

Initial target price of 5.14p (Optimo Capital note on 15 Oct)

While we wait for the next news, probably next week (on HMS as well as Hebei), let's look at the Hebei interaction with Kazera's and Arcadia's Namibia Ta/Li mines.

Hebei is a huge construction company based in China. China is fast developing strong links with Namibia, for example 'China and Namibia open up new fronts under BRI' http://en.people.cn/n3/2024/1129/c90000-20248308.html

Given the background, I think it unlikely that Hebei and China will allow their interests in Kazera's and Arcadia's Namibia Ta/Li mines to be lost by default, to be taken over by others.

Kazera is in a strong position now because of potential earnings from its South African assets. Kazera's share price has risen this year. (Arcadia has slumped, despite its other assets, presumably because of the lack of funding from Hebei.)

Personally I don't think the Kazera/Hebei arbitration will end in '60 business days', because the eventual deal will likely involve Arcadia as well as Kazera and Hebei, and will need more time. If that is the case, it could be to Kazera's significant advantage.

Hebei has assets. Arcadia in the mix. Venture partner for Ta/Li mines? We'll see.

Yes, I agree that '[Hebei] arbitrating' is not the same as '[Kazera] to commence arbitration proceedings'.

But both the RNS on 4 Sep and on 24 Sep mention conclusion of 60 days. I doubt whether we will get any information before then (17 Dec).

It's interesting that both Arcadia (ASX 30 Oct) and Kazera (RNS 30 Jul) mention discussion with other parties. Arcadia's note is quite robust about Hebei at Swanson.

In the meantime we really need some hard data from Kazera on offtake & sales of HMS & diamonds.

Calm before the storm, then.

I picked up another 1/2 M shares this week.

Diamond & HMS progressing to sales.

Hebei would not be arbitrating if they didn't want our Ta/Li mine. Possibly offering assets rather than cash. Arcadia in the mix. Worth watching.

Some finance can still be raised: 'The Company's existing authority to allot equity securities as passed at the Annual General Meeting of the Company held on 26 April 2023 remains in full force and effect until 18 July 2024.'

I think the idea of AMS gaining control of the company is an interesting scenario which could play out eventually, but it would be at a price. They did not invest at a premium to devalue their own stake by acting precipitously.

Moving from exploration & planning to production was always going to be challenging, and I have confidence this will work out fine, albeit at a longer timeframe than I was expecting.

I see from Arcadia (ASX AM7) news 2 February 2024 that HeBei Xinjian Construction has expended Au$3,245,000 on Arcadia's Swanson Ta/Li mine, next door to Kazera's mine that HeBei is purchasing. So no shortage of money there !

So we have four actors: Kazera Global, Arcadia Minerals, Hebei Xinjian Construction, African Mineral Sands. “Build a better mousetrap and the world will beat a path to your door.” Consider KZG's Aftan and Arcadia's Swanson (Ta, Li), KZG's Alexcor diamonds, Whale Head heavy mineral sands, monazite (Ce, La, Nd, Th). This is quite something.

On the corporate front, KZG's new investor has just spent two-and-a-half times KZG's current share price to buy just 30% of KZG's shares. And yet we are distracted by the coincidental and enigmatic default of Hebei on its purchase of KZG's Aftan (while Hebei seems fully engaged with KZG's neigbour Arcadia).

There is something going on. Perhaps exploiting the better mousetrap in a market downturn requires some manoeuvring, to establish new leaders. The assets are ready go into production and cash flow. Is not this the bigger picture here?

Excellent news. High Li grades. Going well.

Interesting, I get a quote to buy at the bid price.
Great assets. Lithium etc.

Siennaj, see Aquis exchange https://www.aquis.eu/aquis-stock-exchange/member?securityidaqse=CRCL.GB
One of the buys was mine.

Here are some mc's (£) for some other AIM companies in the Li space...
ZNWD 23m
SAV 43m
KOD 43m
EMH 77m
CUSN 81m
PREM 127m
ALL 267m
Of course, this is not a like-for-like comparison. KZG and the others have different portfolios and are at different stages.
But I think it shows KZG's significant undervaluation, considering its revenues and assets.

Many thanks, Poppyseed, sounds like things are moving.

When I bought last November, I said on this board 'High grade lithium and tantalum in a stable and supportive country (Côte d'Ivoire). Vital resources. Well financed. Good to get in early.'
Later, I was dismayed at the share price halving, but after continuous research, I kept averaging down. So I have a large stake in FRG, fortunately now in substantial profit. FRG certainly has delivered, due to geology/geography/demand, but also due to an ambitious and energetic management. (My other major investment is in KZG, another company which is also astonishingly undervalued considering the resources, management and interest from other parties.)
FRG is now on a trajectory. The lithium mineralisation uncovered and the involvement of Ricca to advance Atex to DFS, and of course the increasing market demand for lithium, shows the huge potential here.